On Tuesday Westpac recommended........>

DOLLAR-CANADA: On Tuesday Westpac recommended buying USD/CAD at C$1.3180, with a

target of C$1.3365 and a stop at C$1.3105.

- Westpac noted that "Bank of Canada Governor Poloz reiterated last week that

the Bank expects to adjust policy up into neutral over time but accompanying

language continues to muddy the waters on timing; Poloz adding that, "the path

back to that neutral range is highly uncertain." The BoC meets next week and

markets may be inclined to price in risks of a BoC that follows other central

banks with less hawkish signaling. President Trump's jawboning of energy prices

via twitter underscores the limit of OPEC's ability to manage oil prices higher

via production cuts. The so-called "NOPEC" bill moving through Congress will

become more topical in coming weeks; the bill removes sovereign immunity to

antitrust regulation, leaving OPEC producers exposed to possible antitrust

violations. Past US administrations have repeatedly opposed the bill but Trump

relishes breaking with predecessors and has regularly scolded OPEC. After a

sharp move lower early in the new year USD/CAD has taken on a more consolidative

tone lately."